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E. The Alleged Fraud

At the tail end of its complaint, the Litigation Trust alleges that the Trenwick and

Trenwick America directors committed fraud, in concert with each other and with outside

advisors to Trenwick. The fraud alleged consists of non-disclosures and material

misstatements of fact.

The allegedly material facts that were wrongly concealed were:

Trenwick America’s financial condition from 2000 through 2003;41

The financial condition and reserve-level problems at Chartwell before its acquisition by Trenwick in 1999;

42

The “true nature of the intercompany payable supposedly due to [Trenwick] by [Chartwell];”

43

The “actual value of the LaSalle transaction;”44 and

  • The “true value of the various [Trenwick] subsidiaries transferred between

companies in the 2000 transaction.”45

The complaint alleges that the Trenwick and Trenwick America officers and directors

had a duty to disclose these facts to “Plaintiff.”46 By that, I suppose the Litigation Trust

means the entity whose claims it now possesses, Trenwick America. Supposedly,

Trenwick America relied to its detriment on the omission of information regarding these

matters.47

46

¶126.

47

at 127.

41 42 43 44 45

¶¶ 125, 131.

30

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